Correlation Between BAIGAI and Sparinvest Lange
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By analyzing existing cross correlation between Investeringsforeningen Bankinvest and Sparinvest Lange, you can compare the effects of market volatilities on BAIGAI and Sparinvest Lange and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BAIGAI with a short position of Sparinvest Lange. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAIGAI and Sparinvest Lange.
Diversification Opportunities for BAIGAI and Sparinvest Lange
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BAIGAI and Sparinvest is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsforeningen Bankinv and Sparinvest Lange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest Lange and BAIGAI is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Investeringsforeningen Bankinvest are associated (or correlated) with Sparinvest Lange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest Lange has no effect on the direction of BAIGAI i.e., BAIGAI and Sparinvest Lange go up and down completely randomly.
Pair Corralation between BAIGAI and Sparinvest Lange
Assuming the 90 days trading horizon Investeringsforeningen Bankinvest is expected to generate 3.18 times more return on investment than Sparinvest Lange. However, BAIGAI is 3.18 times more volatile than Sparinvest Lange. It trades about 0.22 of its potential returns per unit of risk. Sparinvest Lange is currently generating about -0.23 per unit of risk. If you would invest 14,546 in Investeringsforeningen Bankinvest on November 4, 2024 and sell it today you would earn a total of 481.00 from holding Investeringsforeningen Bankinvest or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investeringsforeningen Bankinv vs. Sparinvest Lange
Performance |
| Timeline |
| Investeringsforeningen |
| Sparinvest Lange |
BAIGAI and Sparinvest Lange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAIGAI and Sparinvest Lange
The main advantage of trading using opposite BAIGAI and Sparinvest Lange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAIGAI position performs unexpectedly, Sparinvest Lange can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sparinvest Lange will offset losses from the drop in Sparinvest Lange's long position.The idea behind Investeringsforeningen Bankinvest and Sparinvest Lange pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sparinvest Lange vs. Jyske Invest Nye | Sparinvest Lange vs. Jyske Invest Korte | Sparinvest Lange vs. Jyske Invest Nye | Sparinvest Lange vs. Jyske Invest Virksomhedsobligationer |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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